How it's worked out
FYC is the first-year premium times the first-year commission rate for that product. Each insurer sets its own rates, product by product, so the same premium can pay quite different FYC. Your commission schedule has the rates that apply to you.
Worked example, with a made-up rate: a client takes a policy at S$3,000 a year. If that product's first-year rate is 50%, your FYC is S$1,500. From the second year you're paid renewal commission on the same policy, at the rates your insurer sets, and that isn't FYC.
FYC is the number a lot of yearly targets are set in, and it's what MDRT's commission method counts. MDRT credits 100% of first-year commission on individual life, critical illness, disability income, accident, long-term care and health policies. Under that method, MDRT ignores overrides, sign-on bonuses and allowances for training.
Where it shows up in your week
A yearly FYC target only turns into action when it becomes a weekly count. The pledge sheet takes a yearly FYC goal and a case size and works down to Sets, Openings, Closings and cases a week. The life insurance commission calculator works out what one policy pays in FYC and in renewals, from the rates in your own schedule. The first-year advisor guide turns an FYC goal into a weekly number, step by step.
Related terms
Questions advisors ask
No. FYP is first-year premium, what the client pays in year one. FYC is your commission on it.
It can. Some insurers pay a year's commission up front and charge it back if the policy doesn't stay in force, and your contract sets how. If that happens, MDRT cuts your next year's credit by the charged-back amount.
Yes. Under the commission method you get 100% of the first-year commission. Under the premium method you'd get 6% of the premium.
Add up the FYC on cases paid to you in the month, and set it beside your yearly target divided by 12. A month behind that line is the one to plan more Sets for.